President Rodrigo Duterte’s imposition on Maynilad and Manila Water to accept government’s unilateral revision of their existing water concessions violates the constitutional guarantee on the freedom to contract.

The Constitution protects contracts from impairment by the State.

The mere say-so of the Duterte administration that the water concessions contain onerous provisions must pass judicial scrutiny, and any one-sided investigation by the administration will never suffice.

One of the major factors considered by potential investors is the predictability of the enforcement of government policies, and any constitutional violation of the freedom to contract derogates that certainty.

The President’s threats that if the water concessionaires will not accept his imposition, the government will take over the water utilities will further drive away investors following the report of the Bangko Sentral ng Pilipinas (BSP) that foreign direct investments plunged 32.8% from January to October in 2019.

EDCEL C. LAGMAN